PG AI Stock Analysis – Buy, Hold, or Avoid?
The Procter & Gamble Company (PG)
Procter & Gamble (PG) remains a fundamentally strong, defensive stock with reliable dividends and stable earnings, but faces near-term technical and macro headwinds. The current valuation is fair, and while long-term prospects are solid, short- and medium-term upside is limited by weak technicals and cautious sentiment. Investors should hold or accumulate on dips, with a focus on compounding income rather than expecting outsized capital gains.
Fundamentals
Procter & Gamble (PG) maintains a robust financial position with stable revenue and margin performance, powered by its strong brand portfolio and global scale. Earnings growth has been consistent, and recent results show the company continuing its streak of marginally outperforming consensus estimates. Despite the premium valuation relative to sector averages, PG's defensive market positioning and reliability as a dividend payer make it appealing for conservative, long-term investors.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
1.49% YoY
Q4 2025
Net Income
-6.46% YoY
Q4 2025
Net Margin
Q4 2025
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q4 2025
Net Income Growth YoY
Latest Quarter: Q4 2025
Revenue Per Share Growth YoY
Latest Quarter: Q4 2025
EPS Growth YoY
Latest Quarter: Q4 2025
Book Value Per Share Growth YoY
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 22.2B | 22.4B | 20.9B | 19.8B | 21.9B | 21.7B | 20.5B | 20.2B |
| Revenue Growth YoY | +1.49% | +2.99% | +1.74% | -2.07% | +2.06% | -0.61% | -0.10% | +0.63% |
| Net Income | 4.3B | 4.8B | 3.6B | 3.8B | 4.6B | 4.0B | 3.1B | 3.8B |
| Net Income Growth YoY | -6.46% | +19.98% | +15.27% | +0.40% | +33.51% | -12.43% | -7.30% | +10.51% |
| EPS | $1.82 | $2.00 | $1.51 | $1.58 | $1.94 | $1.65 | $1.30 | $1.56 |
| EPS Growth YoY | -6.19% | +21.21% | +16.15% | +1.28% | +34.72% | -12.70% | -7.14% | +10.64% |
Profitability Metrics
Gross Margin
TTM
Operating Margin
TTM
Net Margin
TTM
Return on Equity
TTM
Return on Assets
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.22% | 51.37% | 49.11% | 50.98% | 52.39% | 52.06% | 49.60% | 51.20% |
| Operating Margin | 24.16% | 26.16% | 20.85% | 23.05% | 26.24% | 26.67% | 18.92% | 22.08% |
| Net Margin | 19.50% | 21.22% | 17.31% | 19.06% | 21.16% | 18.21% | 15.28% | 18.59% |
| Return on Equity (ROE) | 8.12% | 8.92% | 6.95% | 7.21% | 9.05% | 7.64% | 6.24% | 7.50% |
| Return on Assets (ROA) | 6.78% | 7.41% | 5.86% | 6.21% | 7.60% | 6.24% | 5.23% | 6.60% |
Technical Analysis
Procter & Gamble (PG) is currently in a topping phase with a bearish short-to-medium term technical outlook as the price trades below key moving averages. Despite the bearish trend, indicators like RSI near neutral and occasional MACD buy signals hint at the potential for limited short-term reversals within broader weakness. Key support around $141.78-$145.44 is critical to watch for near-term stability.
No extreme reading
Price in downtrend
Strong trend active
Watching for cross
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Procter & Gamble (PG) maintains a robust financial position with stable revenue and margin performance, powered by its strong brand portfolio and global scale. Earnings growth has been consistent, and recent results show the company continuing its streak of marginally outperforming consensus estimates. Despite the premium valuation relative to sector averages, PG's defensive market positioning and reliability as a dividend payer make it appealing for conservative, long-term investors.
Latest Earnings
Q4 2025 Earnings (Dec 31, 2025)
Earnings Per Share (EPS)
Actual
$1.88
Estimated
$1.86
Surprise
+$0.02
Surprise %
+1.08%
Revenue
Actual
$22.21B
Estimated
$22.3B
Surprise
-$89.34M
Surprise %
-0.40%
Historical Earnings
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $1.88 | $1.99 | $1.48 | $1.54 | $1.88 | $1.93 | $1.40 | $1.52 |
| EPS (Estimated) | $1.86 | $1.90 | $1.42 | $1.52 | $1.89 | $1.90 | $1.37 | $1.41 |
| EPS Surprise | +$0.02 | +$0.09 | +$0.06 | +$0.02 | -$0.01 | +$0.03 | +$0.03 | +$0.11 |
| % Diff | +1.1% | +4.7% | +4.2% | +1.3% | -0.5% | +1.6% | +2.2% | +7.8% |
| Revenue | ||||||||
| Revenue (Actual) | $22.21B | $22.39B | $20.89B | $19.78B | $21.88B | $21.74B | $20.53B | $20.2B |
| Revenue (Estimated) | $22.3B | $22.18B | $20.84B | $20.15B | $21.58B | $21.99B | $20.72B | $20.43B |
| Revenue Surprise | -$89.34M | +$204.34M | +$48.31M | -$377.98M | +$303.76M | -$249.38M | -$192.63M | -$239.91M |
| % Diff | -0.4% | +0.9% | +0.2% | -1.9% | +1.4% | -1.1% | -0.9% | -1.2% |
Valuation
Procter & Gamble (PG) currently trades at a valuation reflecting stable earnings and moderate growth, supported by its solid market position in the Consumer Defensive sector. Analyst consensus leans bullish with a reasonable upside potential around 12-20% based on multiple price targets, supported by steady revenue and earnings growth prospects. The company exhibits defensive characteristics valued slightly below sector averages, indicating a fair yet cautiously optimistic investment case.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 20.05 | 19.71 | 27.04 | 26.53 | 21.29 | 25.77 | 32.06 | 25.24 |
| Price to Sales | 15.64 | 16.73 | 18.72 | 20.23 | 18.02 | 18.77 | 19.59 | 18.77 |
| Price to Book | 6.52 | 7.03 | 7.52 | 7.65 | 7.71 | 7.87 | 8.00 | 7.57 |
| Enterprise Value to EBITDA | 66.63 | 57.09 | 76.42 | 76.34 | 61.66 | 70.76 | 87.89 | 73.12 |
| Enterprise Value to Revenue | 16.80 | 17.83 | 19.96 | 21.49 | 19.14 | 19.88 | 20.76 | 20.02 |
Sentiment & Analyst Ratings
The overall sentiment for Procter & Gamble (PG) is mixed yet cautiously optimistic. Analysts maintain a moderate buy consensus with price targets suggesting upside potential, although recent downward revisions reflect caution amid macroeconomic headwinds and tariff burdens. Retail investors echo this conservatism, balancing belief in PG's strong brand portfolio against concerns over valuation and volume growth challenges.
Analyst Recommendations
Risk Assessment
Procter & Gamble (PG) currently faces moderate financial and market risks amid challenging economic conditions, including tariff impacts and volume stagnation. The company maintains strong brand leadership and solid solvency despite compressed liquidity and earnings growth pressure, positioning it for resilience with manageable financial risk. Investors should weigh the stable capital structure against near-term volatility risks and sector headwinds.
Liquidity & Solvency
Current Ratio
Latest Quarter: Q4 2025
Quick Ratio
Latest Quarter: Q4 2025
Debt-to-Equity
Latest Quarter: Q4 2025
Debt-to-Assets
Latest Quarter: Q4 2025
| Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
|---|---|---|---|---|---|---|---|---|
| Liquidity Metrics | ||||||||
| Current Ratio | 0.72 | 0.71 | 0.70 | 0.71 | 0.76 | 0.75 | 0.73 | 0.69 |
| Quick Ratio | 0.51 | 0.51 | 0.49 | 0.50 | 0.55 | 0.55 | 0.53 | 0.48 |
| Solvency Metrics | ||||||||
| Debt-to-Equity | 0.69 | 0.67 | 0.68 | 0.65 | 0.68 | 0.70 | 0.66 | 0.64 |
| Debt-to-Assets | 0.29 | 0.28 | 0.28 | 0.28 | 0.28 | 0.29 | 0.27 | 0.27 |
Liquidity Assessment
Current Ratio: 0.72(Weak)
Quick Ratio: 0.51(Weak)
The company has relatively weak liquidity and may face challenges meeting short-term obligations.
Solvency Assessment
Debt-to-Equity: 0.69(Moderate)
Debt-to-Assets: 0.29(Low)
The company maintains a balanced capital structure with manageable debt levels.
Frequently Asked Questions about PG
AI Answers: Common Questions About PG
Get AI-powered answers to the questions investors ask most about The Procter & Gamble Company
PG is not a strong buy at current levels ($145.16, P/E ~21) as valuation is fair and technicals are weak, but it remains attractive for long-term, income-oriented investors willing to accumulate on dips or hold for dividends.
Unless your thesis has changed or you need to rebalance, there is no urgent reason to sell; fundamentals remain intact, but technical weakness suggests waiting for a reversal before adding more.
The biggest risks are tariff and commodity cost headwinds (up to $1B pretax), volume stagnation from private-label competition, and liquidity ratios below 1.0, which could pose short-term financial stress if conditions worsen.
Analyst targets suggest 12-20% upside from current levels, with technical resistance at $146.79, $150, and $151.62 (200 SMA); downside support is at $141.78 and $138—breakdown below these could accelerate losses.
PG is fairly valued at a P/E of 20.95, in line with sector averages; EV/EBITDA is elevated versus history but justified by defensive cash flows and brand strength, with no clear discount or premium.
PG is fundamentally strong: gross margin is 51.6%, net margin 19%, ROE ~30%, and EPS grew 8% YoY; the balance sheet is solid, but liquidity ratios are below 1.0 and should be monitored.
Technically, PG is in a bearish phase below all major SMAs, with RSI at 44 and key support at $141.78-$145.44; no clear reversal or breakout is present, so caution is warranted for new entries.
Key catalysts include upcoming earnings (watch for margin and volume trends), potential tariff relief, new product launches (e.g., professional cleaning, WNBA partnership), and macroeconomic shifts impacting input costs.
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